Wall Street Journal
July 20, 2010
ECB officials have taken a strong stance against government stimulus to support the economic recovery, arguing that austerity is the better means to boost confidence, investment and spending. That has put them at odds with many economists in the U.S. who have warned against pulling the plug on stimulus too soon.
An ECB paper explains their reasoning.
“Our findings suggest that the effectiveness of spending shocks in stimulating economic activity has substantially decreased over time,” ECB economists Jacopo Cimadomo and Sebastian Hauptmeier wrote with Markus Kirchner of the University of Amsterdam.
More
The ECB paper
No comments:
Post a Comment